Microsoft Corporation (NASDAQ:MSFT) has decided to temporarily pause construction on parts of its ambitious data center project in Mount Pleasant.
What Happened: Earlier this week, the company said that it still plans to complete the first phase of the data center, with a total investment of $3.3 billion expected by the end of 2026, reported Wisconsin Public Radio.
"We have paused early construction work for this second phase while we evaluate scope and recent changes in technology and consider how this might impact the design of our facilities," a Microsoft spokesperson told the publication.
The AI data center in Wisconsin was expected to be used by ChatGPT-parent OpenAI for a massive supercomputer, according to The Information.
Microsoft paused some construction on a Wisconsin AI data center that OpenAI is slated to used. The company said it needs to evaluate "scope and recent changes in technology," as well as how "this might impact the design of our facilities."
— Anissa Gardizy (@anissagardizy8) January 5, 2025
Sean Ryan, representing the village of Mount Pleasant, confirmed the pause is to integrate new data center designs. He noted that the first phase is on track for completion this year.
Microsoft did not immediately respond to Benzinga's request for comments.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It Matters: The decision to pause construction comes as Microsoft is heavily investing in data centers to support its growing focus on artificial intelligence.
The company has announced plans to allocate approximately $80 billion in fiscal 2025 toward developing data centers for AI model training and deploying AI and cloud-based applications.
The Mount Pleasant site was initially optioned for a Foxconn (OTC:FXCOF) megaproject that was later abandoned. Foxconn had promised a $10 billion investment in Mount Pleasant but the company later scaled back, reducing the investment to $672 million.
Price Action: Microsoft's stock rose by 1.14% on Friday, closing at $423.35. Over the past year, Microsoft shares gained 15.12%, trailing behind the Nasdaq 100, which surged 30.79% during the same period, according to data from Benzinga Pro.
Check out more of Benzinga's Consumer Tech coverage by following this link.
Photo Courtesy: Shutterstock.com
Jeff Bezos Booby-Trapped His Childhood Home To Keep Out Pesky Siblings—But Later Convinced Them to Invest $10,000 Each In Amazon: How Did It Turn Out For Them?
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
The AI data center in Wisconsin was expected to be used by 
ウィスコンシンの人工知能データセンターは、The Informationによると、ChatGPT関連の親会社であるOpenAIによって巨大なスーパーコンピュータ用に使用されることが期待されていました。